For years, Japan has been relatively closed to significant foreign direct investment, but more recently the government has changed its policy and actually now encourages inward investment. Wal-Mart, taking advantage of this shift in policy, acquired a large Japanese I retailer in 2002. Wal-Mart's initial venture into Japan has been challenging and has forced I the company to change its approach to better compete with local retailers and meet the needs of Japanese consumers. Discussion of the case can revolve around the following questions: How would you characterize Wal-Mart's investment in Japan? Why was Japan an attractive destination for the company? Why did Japan change its position on inward foreign direct investment? How will Wal-Mart's investment benefit Japan? Discuss the strategic changes Wal-Mart's Japanese rivals are making in response to the entry of Wal-Mart. What does this tell you about the power of Wal-Mart? What changes has Wal-Mart had to make to attract Japanese consumers? What can Wal-Mart learn from this experience